Consumer Comeback Blog

June Consumer Credit Falls Short of Economist Expectations

Consumers took on less debt in the month of June than economists predicted. Despite projections of consumer credit jumping to $10.3 billion, Federal Reserve reports released Tuesday afternoon indicate that consumer credit only rose by $6.5 billion, which represents the smallest increase over the last eight months.

In June, consumers kept their credit cards in their wallets a little more than previous months. Despite the increase in overall consumer credit, revolving credit, which applies to credit card debt, was reduced to $3.70 billion in June.

Consumers must be shopping for cars and investing in their future because non-revolving credit, which includes student loans and auto financing, rose by $10.15 billion to $1.713 trillion during June, on a seasonally adjusted basis. Federal student credit outstanding rose slightly to $470.7 billion in June. Those numbers are reported without seasonal adjustments.

Read the Federal Reserve full report.